In 1990 the world saw the birth of the first-ever cryptocurrency called eCash. The electronic currency created by David Chaum, who released it through his company DigiCash. In 2008 Satoshi Nakamoto revisited the idea of creating what we now call cryptocurrency.
Since then, there has been a lot of controversy surrounding how people can start investing in cryptocurrency rather than looking at the NFL schedule week 12 odds. Today we take a deeper look into cryptocurrency and also look at how you can start investing.
What is Cryptocurrency?
Cryptocurrency is a digital currency that can be used similarly to fiat currencies, such as making and receiving payments. This means that cryptocurrency is a monetary means of exchange that can be used in the real world. Cryptocurrency operates through a network of computers that isn’t reliant on a central point of control.
When we work with money, we generate a series of receipts to keep a record of all our transactions. The same concept applies to cryptocurrency; however, the difference is in how transactions are recorded. Transactions made within the cryptocurrency network are recorded through something called a blockchain.
Blockchain operates as a type of ledger, allowing users within the network to keep a record of all transactions that have been processed and approved. Each time a transaction is made, it gets added to a block. The block will then be added to the chain, thus creating a blockchain. Always remember that once a piece of information has been added to the blockchain, it cannot be amended, and that’s why blockchain is as effective as it is.
How to Start Investing in Crypto
Now that we know how cryptocurrency operates, we can start looking into how we can start investing. Below we take a look at the different ways you can start investing in cryptocurrency.
Start by Doing Your Research
Anything worth investing in is worth doing some research on, which is why doing your research is vital to your cryptocurrency success. The internet is always a good place to start when looking for things. Try your best to find in-depth information that can give you an in-depth understanding of what you’re looking for.
Research can come in many forms, such as looking at guides, watching videos, attending masterclasses or cryptocurrency workshops, and many more. Your information doesn’t have to come in the most convenient way; however, it does have to be valid and hold a lot of truth.
Start Looking for Cryptocurrency Exchanges
We need to use platforms that offer us cryptocurrency services to have access to cryptocurrency, such as cryptocurrency exchanges. Cryptocurrency exchanges are businesses that offer cryptocurrency services, such as the ability to exchange or trade cryptocurrency. Cryptocurrency exchanges are platforms that allow us to use cryptocurrency in the manner that we need.
Try your Best to Find a Mentor
Finding a mentor can be one of the best decisions you make during your cryptocurrency investing journey. A mentor assists you in finding your feet and can help you immensely in making the right decision for you.
A mentor assists you with the following:
- Provide guidance
- Emotional support
- Helps with motivation
- Role modeling and many more
It’s important to keep in mind that some mentors will charge you for the services they offer; however, some may not do so. Always do your best to find someone who is well-known within the field or has many years of experience when it comes to cryptocurrency.
Starting out alone in cryptocurrency can have many risks, including making mistakes that may cost money. It is always your responsibility to do your due diligence when you’re looking for a mentor, as not everyone is a good mentor.
Investing in cryptocurrency is not a linear process and can be highly taxing on both your pocket and your mind. Always make sure that you are prepared for the journey and make sure that you use whatever resources are available to you.